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The city of Glendale, Calif. seems like an unlikely place to grow one of the next billion-dollar startups in the booming Los Angeles tech ecosystem.
Located at the southeastern tip of the San Fernando Valley, the Los Angeles suburb counts its biggest employers as the adhesive manufacturer Avery Dennison; the Los Angeles industrial team for the real estate developer CBRE; the International House of Pancakes; Disney Consumer Products; DreamWorks Studios; Walt Disney Animation and Univision. “Silicon Beach” this ain’t.
But it’s here in the (other) Valley’s southernmost edge that investors have found a startup they consider to be the next potential billion-dollar “unicorn” that will come out of Los Angeles. The company is ServiceTitan, and its market… is air conditioners.
More specifically, it’s the contractors that service equipment like the heating, ventilation and cooling systems at commercial and residential properties across the U.S.
Founded by Ara Mahdessian and Vahe Kuzoyan in 2012, ServiceTitan is very much an up-and-coming billion-dollar business that’s a family (minded) affair.
Mahdessian and Kuzoyan met on a ski trip organized by the Armenian student associations at Stanford and the University of Southern California back when both men were in college.
Both programmers, the two reconnected after doing stints as custom developers during and after college, and then when they were developing tools for their families’ businesses as residential contractors in the Los Angeles suburb of Glendale.
The two men built a suite of services to help contractors like their fathers manage their businesses. Now following a $62 million round of funding led by Battery Ventures last month, the company is worth roughly $800 million, according to people with knowledge of the investment, and is on its way to becoming Los Angeles’ next billion-dollar business.
Battery isn’t the only marquee investor to find value in ServiceTitan’s business developing software managing day labor.
Iconiq Capital, the investment firm managing the wealth of some of Silicon Valley’s most successful executives (the firm counts Facebook chief executive Mark Zuckerberg, and senior staff like Dustin Moskovitz and Sheryl Sandberg; Twitter chief Jack Dorsey; and LinkedIn founder and chief executive Reid Hoffman among its clients, according to a 2014 Forbes article), has also taken a shine to the now-gargantuan startup from Glendale.
It was Iconiq that put a whopping $80 million into ServiceTitan just last year — and while the 2017 cash infusion may have been larger, the company’s valuation has continued to rise.
That’s likely due to a continually expanding toolkit that now boasts a customer relationship management system, efficient dispatching and routing, invoice management, mobile applications for field professionals and marketing analytics and reporting tools.
“ServiceTitan’s incredibly fast growth is a testament to the brisk demand for new mobile and cloud-based technology that is purpose-built for the tradesmen and women in our workforce,” said Battery Ventures general partner Michael Brown — who’s taking a seat on the ServiceTitan board.
What distinguishes the ServiceTitan business from other point solutions is that they’ve taken to targeting not mom-and-pop small businesses but franchises like Mr. Rooter and George Brazil. Gold Medal Service, John Moore Services, Hiller Plumbing, Casteel Air, Baker Brothers Plumbing and Air Conditioning and Bonney may not be household names, but they’re large providers of contractors who work under those brands.
The company counts 400 employees on staff, and will look to use the money to continue to grow out its suite of products and services, according to a March statement announcing the funding.
And as Battery Ventures investor Sanjiv Kalevar noted in a blog post last year, the opportunity for software companies serving blue-collar workers is huge.
For people sitting at our desks and working behind laptops on programs like Microsoft Office, it can be easy to overlook the large, sometimes forgotten, workforce out there in construction, manufacturing, transportation, hospitality, retail and many other multi-billion dollar industries. Indeed, more than 60% of U.S. workers and even more globally fall into these “blue collar” industries.
By and large, these workers have not benefitted much from recent technology improvements available to office-based workers—think new email and workplace-collaboration technologies, or advanced sales and HR systems. Never mind the long-term opportunities for companies in these sectors from technologies like artificial intelligence, drones, and virtual or augmented reality; hourly and field workers are dealing with much more basic on-the-job challenges, like finding work, getting their jobs done on time and getting paid. These more basic needs can be solved with seemingly simple technologies—software for billing, scheduling, navigation and many other business workflows. These kinds of technologies, unlike AI, don’t automate away workers. Instead, they empower them to be more efficient and productive.
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If you’ve ever gone camping and found yourself thinking it kind of sucks, likely because you’re too close to other campers, you might be interested to learn about Tentrr, a three-year-old, 47-person company that’s promising to make it “dirt simple” to enjoy the great outdoors. How: by striking deals with private landowners who are willing to host semi-permanent campsites on their property.
What do these look like? Picture elevated decks with Adirondack chairs, canvas expedition tents, wood picnic tables and sun showers, not to mention a fire pit, lanterns, dry food storage, cookware, a camping toilet and air mattresses that, courtesy of most hosts, will come with fresh linens.
Venture capitalists certainly appreciate the startup’s pitch. Tentrr — founded by one-time investment banker turned former NYSE managing director Michael D’Agostino — has raised $13 million to date, including a newly closed $8 million Series A round led by West, a San Francisco-based venture studio that both funds startups and helps them market their goods and services.
No doubt the investors are looking at the overall market, whose numbers are compelling. According to one trade association, the outdoor recreation industry represents an $887 billion opportunity, with Americans shelling out $24 billion annually on campsites alone.
Still, it’s easy to wonder how scalable the company will be. Tentrr had 100 campsites up and running in the Northeastern U.S. as of the end of last year. D’Agostino expects it will have 1,000 sites by year-end, including on the West Coast, where it will begin installing camps this summer. But this assumes that Tentrr can convince enough families with sufficiently large properties that partnering with the company is worthwhile.
D’Agostino says its landowner partners need to have 15 acres at least and that the average property on the platform currently is much larger than that. He also says these property owners keep 80 percent of whatever they decide to charge campers to stay on their grounds.
For what it’s worth, Tentrr doesn’t seem to have much in the way of direct competition if you exclude state campgrounds. Venture-backed Hipcamp, for example, which raised a small amount of seed funding back in 2014, partners with private landowners to help arrange camping experiences, but it mostly acts as a search engine. A growing number of RV-focused startups have also sprung up, including Outdoorsy. But their customers are largely looking for adventure on the road, not in a secluded field.
There’s always industry giant Airbnb to worry about. But Airbnb, whose offerings include campsites, emphasizes unique experiences. Tentrr is largely about standardizing its process in order to leave fewer questions — and less doubt — about what to expect. (D’Agostino says that roughly 40 percent of Tentrr customers are first-time campers.)
We know that if the service makes it way to California, we’re likely to try it, having suffered through some fairly crummy camping experiences. If you’re also interested in learning more, you might check out our conversation with D’Agostino, edited for length. We chatted yesterday.
TC: You were a banker, then you traveled around the country and world, trying to convince companies that they should list on the NYSE instead of Nasdaq. How did this company come to pass?
MD: When I was a little kid, we’d sometimes stay at a family friend’s farm in Litchfield, Connecticut. I assumed that every kid had a Litchfield farm where they could camp, which isn’t the case obviously. Meanwhile, working 100 hours a week as an investment banker, it just became harder and harder to get out of the city and have great experiences.
After a couple of disastrous camping trips at noisy, dirty campgrounds with my girlfriend and now wife, Eloise, we just realized the idea [of camping as it’s known today] is stupid. It’s taking a bunch of people who are living on top of each other in a city and moving them to a campground where they’re living on top of each other in flimsy tents.
The legacy campground industry hasn’t changed since the Civil War. It’s run by the government — which I’m happy to compete with all day long. And these are just terrible businesspeople. We want to wipe away this infrastructure by distributing it among rural landowners.
TC: So you’re building these semi-permanent camping sites. How standardized is the pricing?
MD: Pricing is variable and set by the landowner who keeps 80 percent of that fee. We keep 20 percent; we also charge a 15 percent fee on top of that nightly rate. Right now, the average price per night is $140, but we’re introducing more features for [hosts], including minimum-night stays, and [surge] pricing if they have demand for a bunch of bookings at the same time.
They can also offer extra amenities and experiences that will allow you to have a personalized experience. For example, landowners, or “camp keepers” as we call them, can offer extra bundles of wood or luxury bedding or horseback riding or skeet shooting. It’s really only limited by the imagination. We’ll also soon allow third parties to provide curated activities so that when you log on to our app, you can book a whitewater rafting trip or reservations at the best farm-to-table restaurant nearby.
TC: What happens if something goes wrong? Who insures what?
MD: Every campsite is covered by a $2 million commercial insurance policy. It’s a benefit not just in terms of liability but in making people feel more comfortable during these stays — both the hosts and guests.
TC: Where are you building these sites, exactly, and how long do you estimate that they will last?
MD: We build them ourselves, right now in places from southern Maine to eastern Pennsylvania.
We get our tents from a family company in Colorado that’s been around for 90 years and that still receives requests to repair tents they’d built 30 years ago [meaning they’re durable]. We also use pressure-treated lumber and marine-grade plywood, so we expect they’ll last for 10 to 20 years.
TC: You’re having to convince people to let strangers onto their properties, sprawling as they may be. What does that sales process look like?
MD: It used to look like me putting 45,000 miles on my Jeep Cherokee and explaining to families why they should have a Tentrr campsite in their hayfields. [Laughs.] Today, direct mail campaigns work beautifully. [Hosts] are also hearing about us from other [hosts] and we make it easier for them to [apply] to join the platform. You click on a link that says “List my property” and you’re walked through a 20-point checklist, including about accessibility and how secluded a property is. Using that feedback, we know with 90 percent accuracy whether or not a property is appropriate. If we think it is, we’ll send out a scout.
TC: Are there sometimes more than one campsite on a property?
MD: No, and we ensure the sites are secluded from neighbors, as well as the landowners, as well as other possible distractions.
TC: What does the clean-up process involve?
MD: It’s relatively maintenance free. There’s no maid service. No keys. No worries about someone stealing silverware. Homeowners have to make sure there are no beer cans left behind, but we place a high priority on land stewardship and emphasize a leave-no-trace approach when it comes to our guests.
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Yesterday we reported that Instagram lacked data portability, knocking the app for the absence of an equivalent to Facebook’s Download Your Information too. Now an Instagram spokesperson tells me “We are building a new data portability tool. You’ll soon be able to download a copy of what you’ve shared on Instagram, including your photos, videos and messages.”
This tool could make it much easier for users to leave Instagram and go to a competing image social network. And as long as it launches before May 25th, it will help Instagram to comply with upcoming European GDPR privacy law that requires data portability.
Instagram has historically made it very difficult to export your data. You can’t drag, or tap and hold on images to save them. And you can’t download images you’ve already posted. That’s despite Instagram now being almost 8 years old and having over 800 million users. For comparison, Facebook launched its Download Your Information tool in 2010, just six years after launch.
We’re awaiting more info on whether you’ll only be able to download your photos, videos, and messages; or if you’ll also be able to export your following and follower lists, Likes, comments, Stories, and the captions you share with posts. It’s also unclear whether photos and videos will export in the full fidelity that they’re uploaded or displayed in, or whether they’ll be compressed. Instagram told me “we’ll share more details very soon when we actually launch the tool. But at a high level it allows you to download and export what you have shared on Instagram” so we’ll have to wait for more clarity.
If Instagram does offer uncompressed downloads of the same image quality as it shows on its app, the Download Your Information tool could make unofficial third-party export apps like InstaPort obsolete. That would be a win for users since these apps are sometimes run by unscrupulous developers who could misuse your content or the Instagram login credentials you need to use them.
Portability could facilitate the rise of legitimate competitors to Instagram, or at least let users back up their content on an image storage app or their own computer. But still, it’s Instagram’s social graph and the data it’s gathered about your interests that help it tune its algorithm to show you the most relevant posts. This personalization moat can leave rivals with similar features unable to provide a similar level of service.
If Instagram wanted to truly level the playing field, it would let you export your social graph in a privacy-safe format that would let users find and follow those same people on a different app. But the announcement of this data portability tool is a much-needed first step to unlocking Instagram’s content vault.
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Mark Zuckerberg’s flimsy defense when congress asked about a lack of competition to Facebook has been to cite that the average American uses eight social apps. But that conveniently glosses over the fact that Facebook owns three of the top 10 U.S. iOS apps: #4 Instagram, #6 Messenger, and #8 Facebook according to App Annie. The top 3 apps are games. Facebook is building its Watch video hub to challenge #5 YouTube, and has relentlessly cloned Stories to beat #7 Snapchat. And Facebook also owns #19 WhatsApp. Zoom in to just “social networking apps”, and Facebook owns the entire top 3.
“The average American I think uses eight different communication and social apps. So there’s a lot of different choice and a lot of innovation and activity going on in this space” Zuckerberg said when asked about whether Facebook is a monopoly by Senator Graham during yesterday’s Senate hearing, and he’s trotted out that same talking point that was on his note sheet during today’s House testimony.
But Facebook has relentlessly sought to acquire or co-opt the features of its competitors. That’s why any valuable regulation will require congress to prioritize competition. That means either breaking up Facebook, Instagram, and WhatsApp; avoiding rules that are easy for Facebook to comply with but prohibitively expensive for potential rivals to manage; or ensuring data portability that allows users to choose where to take their content and personal information.
Breaking up Facebook, or at least preventing it from acquiring established social networks in the future, would be the most powerful way to promote competition in the space. Facebook’s multi-app structure creates economies of scale in data that allow it to share ad targeting and sales teams, backend engineering, and relevancy-sorting algorithms. That makes it tough for smaller competitors without as much money or data to provide the public with more choice.
Regulation done wrong could create a moat for Facebook, locking in its lead. Complex transparency laws might be just a paperwork speed bump for Facebook and its army of lawyers, but could be too onerous for upstart companies to follow. Meanwhile, data collection regulation could prevent competitors from ever building as large of a data war chest as Facebook has already generated.
Data portability gives users the option to choose the best social network for them, rather than being stuck where they already are. Facebook provides a Download Your Information tool for exporting your content. But photos come back compressed, and you don’t get the contact info of friends unless they opt in. The list of friends’ names you receive doesn’t allow you to find them on other apps the way contact info would. Facebook should at least offer a method for your exporting hashed version of that contact info that other apps could use to help you find your friends there without violating the privacy of those friends. Meanwhile, Instagram entirely lacks a Download Your Information tool.
Congress should push Zuckerberg to explain what apps compete with Facebook as a core identity provider, an omni-purpose social graph, or cross-platform messaging app. Without choice, users are at the mercy of Facebook’s policy and product examples. All of the congressional questions about data privacy and security don’t mean much to the public if they have no viable alternative to Facebook. The fact that Facebook owns or clones the majority of the 8 social apps used by the average American is nothing for Zuckerberg to boast about.
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At its re:Invent developer conference, AWS made so many announcements that even some of the company’s biggest launches only got a small amount of attention. While the company’s long-awaited Elastic Container Service for Kubernetes got quite a bit of press, the launch of the far more novel Fargate container service stayed under the radar.
When I talked to him earlier this week, AWS VP and Amazon CTO (and EDM enthusiast) Werner Vogels admitted as much. “I think some of the Fargate stuff got a bit lost in all the other announcements that there were,” he told me. “I think it is a major step forward in making containers more cloud native and we see quite a few of our customers jumping on board with Fargate.”
Fargate, if you haven’t followed along, is a technology for AWS’ Elastic Container Service (ECS) and Kubernetes Service (EKS) that abstracts all of the underlying infrastructure for running containers away. You pick your container orchestration engine and the service does the rest. There’s no need for managing individual servers or clusters. Instead, you simply tells ECS or EKS that you want to launch a container with Fargate, define the CPU and memory requirements of your application and let the service handle the rest.
To Vogels, who also published a longer blog post on Fargate today, the service is part of the company’s mission to help developers focus on their applications — and not the infrastructure. “I always compare it a bit to the early days of cloud,” said Vogels. “Before we had AWS, there were only virtual machines. And many companies build successful businesses around it. But when you run virtual machines, you still have to manage the hardware. […] One of the things that happened when we introduced EC2 [the core AWS cloud computing service] in the early days, was sort of that it decoupled things from the hardware. […] I think that tremendously improved developer productivity.”
But even with the early containers tools, if you wanted to run them directly on AWS or even in ECS, you still had to do a lot of work that had little to do with actually running the containers. “Basically, it’s the same story,” Vogels said. “VMs became the hardware for the containers. And a significant amount of work for developers went into that orchestration piece.”
What Amazon’s customers wanted, however, was being able to focus on running their containers — not what Vogels called the “hands-on hardware-type of management.” “That was so pre-cloud,” he added and in his blog post today, he also notes that “container orchestration has always seemed to me to be very not cloud native.”
In Vogels’ view, it seems, if you are still worried about infrastructure, you’re not really cloud native. He also noted that the original promise of AWS was that AWS would worry about running the infrastructure while developers got to focus on what mattered for their businesses. It’s services like Fargate and maybe also Lambda that take this overall philosophy the furthest.
Even with a container service like ECS or EKS, though, the clusters still don’t run completely automatically and you still end up provisioning capacity that you don’t need all the time. The promise of Fargate is that it will auto-scale for you and that you only pay for the capacity you actually need.
“Our customers, they just want to build software, they just want to build their applications. They don’t want to be bothered with how to exactly map this container down to that particular virtual machine — which is what they had to do,” Vogels said. “With Fargate, you select the type of CPUs you want to use for a particular task and it will autoscale this for you. Meaning that you actually only have to pay for the capacity you use.”
When it comes to abstracting away infrastructure, though, Fargate does this for containers, but it’s worth noting that a serverless product like AWS Lambda takes it even further. For Vogels, this is a continuum and driven by customer demand. While AWS is clearly placing big bets on containers, he is also quite realistic about the fact that many companies will continue to use containers for the foreseeable future. “VMs won’t go away,” he said.
With a serverless product like Lambda, you don’t even think about the infrastructure at all anymore, not even containers — you get to fully focus on the code and only pay for the execution of that code. And while Vogels sees the landscape of VMs, containers and serverless as a continuum, where customers move from one to the next, he also noted that AWS is seeing enterprises that are skipping over the container step and going all in on serverless right away.
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Startup life is full of quick, lateral thinking. “Move fast and break things” is the mantra. However, with the rise of token sales – essentially vehicles for untested startups to raise millions in a few minutes – lots of stuff gets broken and little gets fixed.
Take BCT – the Blockchain Terminal – for example. This frothy project led by Bob Bonomo, a former hedge fund guy turned Blockchain guru, features some interesting breakages.
Yesterday at about 3pm Eastern Time the company’s FAQ – which has since been updated but is still hidden here – read something like this:
While this sort of techno greeking is fine if you’re sending mock-ups back and forth, the token sale had been running since April 1st, a fact that was baffling to me and another reporter. Was this an April Fool’s joke? No, because when I visited the sale’s Telegram room I found a group of happy buyers asking questions about their future tokens.
Ever the reporter, I asked if anyone had seen the terminals and a community manager sent me this:
Interesting… blank screens at a demo event. The other CM, quicker on the draw, sent this:
Fair enough. In fact, crypto needs a product like this to legitimize it with Wall Street. But clearly they were moving so fast that the wheels were falling off.
Finally I did the obvious thing: visit the white paper. There we find that the Terminal is being built in conjunction with FactSet, a venerable research company that has seen all the vicissitudes of financial data. In fact, the paper is a tour-de-force on par with the best of the white papers I’ve seen. But we also discover that the white paper is a draft.
In short, BCT wouldn’t pass the average human investor sniff test but is definitely well on the way to completing its token sale. This is a problem.
BCT is not alone. I’ve spoken to development houses working with founders who barely understand cryptocurrency let alone understand their own token sales. I’ve seen founders’ eyes light up like the Big Bad Wolf eyeing Porky Pig when they talk about all the capital they will unlock. And I spoke to a founder on stage who said he would be very careful with the $80 million they raised for a company designed to raise money for ICOs. Greed is clouding this market in ways that are at once dangerous and comical.
There is precedent for this. In the early days of the Internet and even the frothiest dot-com days you could see the avarice in the eyes of Pets.com and Cisco executives who knew that big money was just around the corner. And we can’t begrudge these founders their excitement. What founder wouldn’t want the sweet feeling of being fully funded for, we presume, the next decade?
I’ve been following token sales with great interest over the past few months for a few reasons. First, I understand the hype cycle. I’ve seen tactics used by token sellers used before by hardware sellers, most notably with flops like the Phantom gaming console and the Notion Ink Adam, and there is a stink that permeates projects that are, at best, half-baked.
I want token sales to thrive as a method to raise capital. I want small startups to be able to turn on a spigot previously available to the well-connected and well-heeled. But the exact opposite seems true. Bankers are moving into a technology space that they little understand while carpetbaggers – lawyers, PR folks, advisors – are working hard to extract cash out of these windfalls. In the end the token sale industry should formalize itself and become as boring as the VC industry. I just hope it survives long enough to get there.
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Mark Zuckerberg ran his apology scripts, trotted out his lists of policy fixes and generally dulled the Senate into submission. And that constitutes success for Facebook.
Zuckerberg testified before the joint Senate judiciary and commerce committee today, capitalizing on the lack of knowledge of the politicians and their surface-level questions. Half the time, Zuckerberg got to simply paraphrase blog posts and statements he’d already released. Much of the other half, he merely explained how basic Facebook functionality works.
The senators hadn’t done their homework, but he had. All that training with D.C. image consultants paid off.
Facebook CEO Mark Zuckerberg arrives to testify before a joint hearing of the US Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee on Capitol Hill, April 10, 2018 in Washington, DC. (Photo: JIM WATSON/AFP/Getty Images)
Sidestepping any gotcha questions or meme-worthy sound bites, Zuckerberg’s repetitive answers gave the impression that there’s little left to uncover, whether or not that’s true. He made a convincing argument that Facebook is atoning for its sins, is cognizant of its responsibility and has a concrete plan in place to improve data privacy.
With just five minutes per senator, and them each with a queue of questions to get through, few focused on the tougher queries, and even fewer had time for follow-ups to dig for real answers.
Did Facebook cover up the Cambridge Analytica scandal or decide against adding privacy protections earlier to protect its developer platform? Is it a breach of trust for Zuckerberg and other executives to have deleted their Facebook messages out of recipients’ inboxes? How has Facebook used a lack of data portability to inhibit the rise of competitors? Why doesn’t Instagram let users export their data the way they can from Facebook?
The public didn’t get answers to any of those questions today. Just Mark’s steady voice regurgitating Facebook’s talking points. Investors rewarded Facebook for its monotony with a 4.5 percent share price boost.
That’s not to say today’s hearing wasn’t effective. It’s just that the impact was felt before Zuckerberg waded through a hundred photographers to take his seat in the Senate office.
Facebook knew this day was coming, and worked to build Zuckerberg a fortress of facts he could point to no matter what he got asked:
Facebook may never have made such sweeping changes and apologies had it not had today and tomorrow’s testimony on the horizon. But this defensive strategy also led to few meaningful disclosures, to the detriment of the understanding of the public and the Senate — and to the benefit of Facebook.
WASHINGTON, DC – APRIL 10: Facebook co-founder, Chairman and CEO Mark Zuckerberg testifies before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC. Zuckerberg, 33, was called to testify after it was reported that 87 million Facebook users had their personal information harvested by Cambridge Analytica, a British political consulting firm linked to the Trump campaign. (Photo by Chip Somodevilla/Getty Images)
We did learn that Facebook is working with Special Counsel Robert Mueller on his investigation into election interference. We learned that Zuckerberg thinks it was a mistake not to suspend the advertising account of Cambridge Analytica when Facebook learned it had bought user data from Dr. Aleksandr Kogan. And we learned that the senate will “haul in” Cambridge Analytica for a future hearing about data privacy.
None of those are earth-shaking.
Perhaps the only fireworks during the testimony came when Senator Ted Cruz laid into Zuckerberg over the Gizmodo report citing that Facebook’s trending topics curators suppressed conservative news trends. Cruz badgered Zuckerberg about whether he believes Facebook is politically neutral, whether Facebook has ever taken down Pages from liberal groups like Planned Parenthood or MoveOn.org, if he knows the political leanings of Facebook’s content moderators and whether Facebook fired Oculus co-founder Palmer Luckey over his [radical conservative] political views.
Zuckerberg maintained that he and Facebook are neutral, but that last question was the only one of the day that seemed to visibly perturb him. “That is a specific personnel matter than seems like it would be inappropriate…” Zuckerberg said before Cruz interrupted, pushing the CEO to exasperatedly respond, “Well then I can confirm that it was not because of a political view.” It should be noted that Cruz has received numerous campaign donations from Luckey.
Full exchange between Senator @tedcruz and Mark Zuckerberg where Senator Ted Cruz questions the Facebook CEO about the censorship of Conservatives on his platform. pic.twitter.com/c6d7jwDbnJ
— The Columbia Bugle
(@ColumbiaBugle) April 10, 2018
This was the only time Zuckerberg seemed flapped, because he knows the stakes of the public perception of Facebook’s political leanings. Zuckerberg, many Facebook employees and Facebook’s home state of California are all known to lean left. But if the company itself is seen that way, conservative users could flee, shattering Facebook’s network effect. Yet again, Zuckerberg nimbly avoided getting cornered here, and was aided by the bell signaling the end of Cruz’s time. He never noticeably raised his voice, lashed back at the senators or got off message.
By the conclusion of the five hours of questioning, the senators themselves were admitting they hadn’t watched the day’s full testimony. Viewers at home had likely returned to their lives. Even the press corps’ eyes were glazing over. But Zuckerberg was prepared for the marathon. He maintained pace through the finish line. And he made it clear why marathons aren’t TV spectator sports.
The question is no longer what revelations would come from Mr. Zuckerberg going to Washington. Tomorrow’s testimony is likely to go similarly. It’s whether Facebook can coherently execute on the data privacy promises it made leading up to today. This will be a “never-ending battle” as Zuckerberg said, dragging out over many years. And again, that’s in Facebook’s interest. Because in the meantime, everyone’s going back to scrolling their feeds.
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While many of us in the tech world are familiar with Facebook’s business model, there is a common misconception among people that Facebook collects information about you and then sells that information to advertisers.
Zuckerberg wants everyone (especially the U.S. Senate) to know that’s not the case, and has laid forth the most simple example to explain it.
During his testimony, the Facebook CEO clarified to Senator John Cornyn that Facebook does not sell data.
There is a very common misconception that we sell data to advertisers, and we do not sell data to advertisers. What we allow is for advertisers to tell us who they want to reach and then we do the placement. So, if an advertiser comes to us and says, ‘Alright, I’m a ski shop and I want to sell skis to women,’ then we might have some sense because people shared skiing related content or said they were interested in that. They shared whether they’re a woman. And then we can show the ads to the right people without that data ever changing hands and going to the advertiser. That’s a very fundamental part of how our model works and something that is often misunderstood.
While, again, this may seem straightforward to many of us, Zuckerberg found himself having to explain more than once that Facebook does not sell data during his Senate testimony.
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Myst holds a special place in the hearts of many. Released in 1993, it was unlike any video game most had seen at the time — and yet, its DNA lingers in countless games released today. It was also the game that made tens of thousands of kids beg their parents for a CD drive.
With the game’s 25th anniversary just months away, Myst has found itself in a place no one could have predicted in ’93: Kickstarter.
The game’s original developers, Cyan, have managed to get the rights to all seven games in the Myst universe, and have turned to Kickstarter to re-release it as one big box set. After launching this morning with a target of raising $247,500 dollars, it’s already smashed through its goal and is currently sitting a bit shy of $500,000.
The games included in the set:
$49 gets you digital copies of each game, while $99 gets you DVD copies in a box built to look like a Myst book. Tiers above that include a bunch of real-world goodies, from a recreation of Gehn’s in-game pen/inkwell to original, hand-drawn concept art.
Oh, and they built a friggin’ Linking book, complete with a 800×480 LCD screen that plays video fly-throughs of the game’s environments when the book is opened. (For the unfamiliar: in the Myst universe, “Linking books” transport those that touch the book to a far-off destination.)
They’ve updated the games to work on “modern systems,, but there’s a bit of a good news/bad news situation there. The good news: it’ll work on Windows 10. The bad news: most of the games won’t work on MacOS. That’s a bit of a drag, given that the series started its life on the Mac — but Cyan says getting everything running on the Mac would take resources they “just don’t have.” Cyan notes that while they’ll continue to sell the updated games once the Kickstarter is over, the special box set is a Kickstarter-only deal.
As arstechnica points out, much of the Myst series is already available for Windows 10 — only Myst III and IV had never been updated for compatibility, as the rights were held by a different publisher. But this Kickstarter brings it all together for a whole new generation, with some real-world treats thrown in for the longtime fans.
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Facebook didn’t ban Cambridge Analytica when it found out in 2015 that it had received user data from Dr. Aleksandr Kogan, and Zuckerberg called that a mistake during his testimony before the Senate. Cambridge Analytica has since been banned.
Zuckerberg explained that “I want to correct one thing that I said earlier in response to a question from Senator Leahy. He had asked why we didn’t ban Cambridge Analytica at the time when we learned of them in 2015. And I answered that what my understanding was was that they were not on the platform, were not an app developer or advertiser. When I went back and met with my team afterwards, they let me know that Cambridge Analytica actually did start as an advertiser later in 2015, so we could have in theory banned them back then, and made a mistake by not doing so.”
NEW YORK, NY – SEPTEMBER 19: CEO of Cambridge Analytica Alexander Nix speaks at the 2016 Concordia Summit – Day 1 at Grand Hyatt New York on September 19, 2016 in New York City. (Photo by Bryan Bedder/Getty Images for Concordia Summit)
When the Guardian informed Facebook about Kogan sharing user data to Cambridge Analytica, Facebook banned Kogan, and required Cambridge Analytica to formally certify that it had deleted all the improperly attained user data. Cambridge Analytica did so, Zuckerberg confirmed in his prepared testimony for today. But Facebook then stopped short of blocking Cambridge Analytica from buying ads on its platform. The company went on to work with the Trump campaign to help it optimize political messaging and ad targeting.
Had Facebook banned Cambridge Analytica at the time, it wouldn’t have been able to buy ads directly on behalf of political campaigns with which it worked. However, the company might still have been able to help these campaigns to optimize their ads, so a 2015 ban wouldn’t have necessarily prevented second-hand use of improperly attained data.
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